Ihs Holding Limited · NYSE:IHS
Ihs — Q4 2024 Earnings Presentation
39 slides from Ihs's earnings presentation, Mar 18, 2025
Slide 1: IHS Towers 4Q/FY24 Earnings Results
IHS TOWERS 4Q/FY24 EARNINGS RESULTS MARCH 18, 2025
Slide 2: Disclaimer
DISCLAIMER Forward-Looking Information This presentation contains forward-looking statements. We intend such forward-looking statements to be covered by relevant safe harbor provisions for forward-looking statements (or their equivalent) of any applicable jurisdiction, including those contained in S
Slide 3: Presenting Today
PRESENTING TODAY Sam Darwish Steve Howden Robert Berg Chairman & CEO Executive Vice President & CFO Head of Investor Relations 3
Slide 4: Key Highlights
KEY HIGHLIGHTS fHS :
Slide 5: 2024 Key Financial Highlights
2024 KEY FINANCIAL HIGHLIGHTS (1) (1) Revenue $1,711 million Adj. EBITDA $928 million ALFCF $304 million (2024 Guidance $1,670-1,700 million) (2024 Guidance $900-920 million) (2024 Guidance $250-270 million) (1) FY24 Constant Currency growth of 6.5% (4Q24: 9.2%) FY24 Adj. EBITDA margin of 54.3% (4Q2
Slide 6: Significant Progress on Strategic Priorities
SIGNIFICANT PROGRESS ON STRATEGIC PRIORITIES Strong Commercial Progress Strengthened Balance Sheet ✓ Renewed or extended contracts covering 72% of revenue1 ✓ Refinanced $1.2 billion through issuance of Senior Notes to remove and reduce shorter term maturity debt ✓ Renewed and extended all MTN MLAs -
Slide 7: IHS Global Tower Portfolio
IHS GLOBAL TOWER PORTFOLIO In 4Q24, we built +313 towers including +217 in Brazil 39,229 5th Largest Towers on 2 Continents (1) Independent Multinational TowerCo Globally By Tower Count (1) Nigeria 16,495 148,097 Cameroon 2,443 Africa Rwanda 1,462 110,155 Zambia 1,875 Côte d’Ivoire 2,682 GD Towers ~
Slide 8: Summary
SUMMARY 2024 Financial results ahead of guidance Significant progress on strategic priorities Well placed to leverage our market leading positions and support growing demand Remain focused on delivering increasing returns for all our stakeholders 8
Slide 9: Financial Review
FINANCIAL REVIEW fHS |
Slide 10: Consolidated Results Snapshot
CONSOLIDATED RESULTS SNAPSHOT Impact of Kuwait disposal FY23 FY242 Y/Y^ 4Q23 4Q242 Y/Y Towers (#) 40,075 39,229 (2.1%) 40,075 39,229 (2.1%) Deconsolidated 1,678 Towers, Tenants (#) 59,727 59,343 (0.6%) 59,727 59,343 (0.6%) 1,700 Tenants and 272 Lease 1.49x 1.51x +0.02x 1.49x 1.51x +0.02x Amendments
Slide 11: 4Q24 Consolidated Revenue Walk
4Q24 CONSOLIDATED REVENUE WALK 4Q24 Revenue Constant Currency Growth $M Constant Currency Growth +$47M or +9.2% +9.2% +$47M Organic Growth +$200M or +39.3% Organic Growth Total Growth ($72M) or (14.1%) +39.3% +$200M (2) Total Growth 510 (14.1%) ($72M) 438 Organic Growth by Segment +61.5% Nigeria +3.
Slide 12: FY24 Consolidated Revenue Walk
FY24 CONSOLIDATED REVENUE WALK FY24 Revenue Constant Currency Growth $M Constant Currency Growth +$139M or +6.5% +6.5% +$139M Organic Growth +$1,022M or +48.1% Total Growth ($414M) or (19.5%) Organic Growth +48.1% +$1,022M Total Growth 2,126 (19.5%) ($414M) 1,711 Organic Growth by Segment +73.2% Nig
Slide 13: Consolidated Revenue and Adjusted EBITDA
CONSOLIDATED REVENUE AND ADJUSTED EBITDA Revenue $M 2,126 41 200 4Q24 510 503 1,711 Revenue Growth Rate Y/Y 11 435 438 48(1) 45 54 418 420 184 124 48 11 46 11 45 13 45 10 484 (14.1%) 108 120 124 ($72M) 131 1,382 1,334 321 998 228 270 242 259 • 4Q24 revenue decreased (14.1%) Y/Y, of which organic +39
Slide 14: Adjusted Levered Free Cash Flow and Capex
ADJUSTED LEVERED FREE CASH FLOW AND CAPEX Adjusted Levered Free Cash Flow (1) $M 433 4Q24 (2) (2) 118 43 Adjusted Levered 107 Free Cash Flow 87 304 67 $107M 43 • 4Q24 ALFCF decreased (9.3%) Y/Y • FY24 ALFCF decreased (29.7%) 4Q23 1Q24 2Q24 3Q24 4Q24 FY23 FY24 Y/Y ALFCF Cash Conversion Rate +43.1% +2
Slide 15: 4Q24 Segment Performance Highlights
4Q24 SEGMENT PERFORMANCE HIGHLIGHTS Revenue and segment Adjusted EBITDA in $M 4Q23 4Q24 Y/Y Towers 16,395 16,495 0.6% Nigeria Tenants 26,009 25,740 (1.0%) Lease Amendments 33,999 35,034 3.0% Revenue 321 259 (19.3%) Segment Adjusted EBITDA 200 155 (22.5%) Segment Adjusted EBITDA Margin % 62.3% 59.8%
Slide 16: Towers and Tenants
TOWERS AND TENANTS Towers (in ‘000s) Towers Built 929 BTS in 2024 40.1 40.3 40.3 40.7 438 39.2 1.7 1.7 1.7 1.7 0.0 12 8.0 8.1 8.2 8.4 8.6 313 0 14.1 14.1 14.1 14.1 14.2 321 216 207 4 2 193 225 3 161 151 160 16.4 16.4 16.3 16.5 16.5 51 34 54 39 32 54 12 22 22 8 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 1Q24 2Q24
Slide 17: ROIC and Capital Allocation
ROIC AND CAPITAL ALLOCATION ROIC (1) (2) FY24 Capital Allocation $M ROIC As of December 31, 2024 15.8% 15.8% 14.6% In 2024 12.4% $256M • Narrowed focus on capital Capital Allocation allocation 11.0% FY24 9.9% • Built 929 New Sites for $54M • Largely completed investment in Project Green • Continued
Slide 18: Debt Profile
DEBT PROFILE Consolidated Net Leverage Ratio Debt and Net Leverage Debt Maturity Profile (2) as of December 31, 2024 $M 3.7x $M As of Sep 30, 2024 As of Dec 31, 2024 8.000% Senior Notes due 2027 940 286 • Continue to target net leverage ratio 5.625% Senior Notes due 2026 500 200 of 3-4x 694 6.250% S
Slide 19: 2025 Guidance
2025 GUIDANCE Introducing 2025 Guidance Key Points Metrics Range Revenue Guidance • Implies organic growth of ~12% (at the mid-point) Revenue $1,680M - $1,710M • Includes impact from the ~1,070 sites not renewed as part of agreement with MTN Nigeria Adjusted EBITDA(1) $960M - $980M BTS Guidance • In
Slide 20: Indicative FY25 Naira Sensitivity
INDICATIVE FY25 NAIRA SENSITIVITY Key Points Rates assumed in guidance (NFEM) Full Year 10% Naira Sensitivity • Average USD:NGN of 1,640 • Dec. 2025 USD:NGN of 1,785 Impact Range(1) Metrics Appreciation Devaluation Sensitivity assumption • The numbers on this page represent an indicative FY impact R
Slide 21: Appendix
APPENDIX tHS oi
Slide 22: FY24 Segment Performance Highlights
FY24 SEGMENT PERFORMANCE HIGHLIGHTS Revenue and segment Adjusted EBITDA in $M FY23 FY24 Y/Y Towers 16,395 16,495 +0.6% Nigeria Tenants 26,009 25,740 (1.0%) Lease Amendments 33,999 35,034 +3.0% Revenue 1,382 998 (27.7%) Segment Adjusted EBITDA 855 588 (31.2%) Segment Adjusted EBITDA Margin % 61.9% 58
Slide 23: FX Overview
FX OVERVIEW Revenue by Reporting Currency (1) Revenue by Linked Contract Split 4Q24 FY24 4Q24 FY24 59% 15% (2) 10% 6% 58% 15% (2) 11% 6% USD 34% USD 28% NGN EUR BRL ZAR NGN EUR BRL ZAR (2) (2) 4% 3% 3% 13% EUR 13% EUR 4% 3% 2% ZMW RWF KWD ZMW RWF KWD 39% Local Currency 39% Local Currency 20% Power (
Slide 24: Power Exposure Overview
POWER EXPOSURE OVERVIEW Power Exposure by Country Country Power Indexation Power Pass-Through Nigeria Brazil South Africa Côte d’Ivoire Cameroon Zambia Rwanda Colombia 24
Slide 25: Our Approach to Sustainability
OUR APPROACH TO SUSTAINABILITY Sustainability Initiatives in 4Q24 Our Strategy Four-pillar Sustainability Strategy • Ethics and governance • Environment and climate change Ethics and Environment and Education and Our people and • Education and economic growth governance climate change economic growt
Slide 26: FX Resets Impact on Our Business
FX RESETS IMPACT ON OUR BUSINESS FX Resets and CPI Escalators offer effective revenue protection against the impact of currency devaluation USD FX Reset Frequency (1) 2024 CPI By Market (2) How FX resets work • A relevant portion of contracts is tied to a “hard currency” including USD and Euro • We
Slide 27: Oil Impact on Our Business
OIL IMPACT ON OUR BUSINESS Power Solutions as at December 31, 2024 (1) Diesel $M Oil Impact • For the last several years, IHS has added hybrid (solar/battery) powered solutions. As part of our Carbon Reduction Roadmap, we expect to continue to upgrade a portion of towers in our portfolio, including
Slide 28: 4Q24 Revenue Overview
4Q24 REVENUE OVERVIEW Our key customers consist of the largest MNOs in the markets where we operate 4Q24 Revenue by Key Customer 4Q24 Revenue by segment 63% MTN 14% Airtel 6% TIM 6% Orange 59% Nigeria 2% Zain 28% SSA 2% Vivo 2% Claro 10% Latam 1% Telkom 2% MENA 1% 9mobile <1% Oi (Fixed) <1% Tigo Cus
Slide 29: IHS Market Data
IHS MARKET DATA We are the leader in market share in 6 of the markets where we operate Country Towers (1) Towerco Market Position Towerco Market Share (2) Core Tenants (3) # out of # Major MNOs (4) Nigeria 16,495 1st 64% 3 out of 4 South Africa 5,693 1st 50% 2 out of 4 Côte d’Ivoire 2,682 1st 100% 3
Slide 30: IHS Markets Overview
IHS MARKETS OVERVIEW Attractive markets well suited for organic growth Population (million people) Data Usage Per SIM (GB/Month) CAGR 2023 – 2028E CAGR 2023 – 2028E 1.5% 2.3% 24.9% 22.1% 692 254 10.2 7.8 644 226 3.4 2.9 2023 2028E 2023 2028E 2023 2028E 2023 2028E All IHS Markets Nigeria All IHS Mark
Slide 31: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION Reconciliation from (loss)/income for the period to Adjusted EBITDA 3-month period ended LTM as of LTM as of LTM as of ($000s) Dec 31, 2023 Mar 31, 2024 June 30, 2024 Sep 30, 2024 Dec 31, 2024 Dec 31, 2023 Sep 30, 2024 Dec 31, 2024 (Loss)/income (456,823) (1,557,250) (
Slide 32: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION Reconciliation from (loss)/income for the period to Adjusted EBITDA 2020 2021 2022(1) 2023(1) 2024 ($000s) (Loss)/income (322,682) (26,121) (468,966) (1,988,178) (1,644,201) Divided by total revenue 1,403,149 1,579,730 1,961,299 2,125,539 1,711,225 (Loss)/income margin
Slide 33: Adjusted Levered Free Cash Flow Reconciliation
ADJUSTED LEVERED FREE CASH FLOW RECONCILIATION Reconciliation of Cash From Operations for the period Adjusted Levered Free Cash Flow 3-month period ended ($000s) Dec 31, 2023 Mar 31, 2024 June 30, 2024 Sep 30, 2024 Dec 31, 2024 Cash from operations 162,054 92,984 151,596 182,431 348,845 Net movement
Slide 34: Adjusted Levered Free Cash Flow Reconciliation
ADJUSTED LEVERED FREE CASH FLOW RECONCILIATION Reconciliation of Cash from Operations for the period to Adjusted Levered Free Cash Flow 2023 2024 ($000s) Cash from operations 902,923 775,856 Net movement in working capital 224,982 158,667 Income taxes paid (45,411) (38,629) Withholding tax (1) (117,
Slide 35: Reconciliation of Return on Invested Capital
RECONCILIATION OF RETURN ON INVESTED CAPITAL Reconciliation from profit/(loss) for the period to Adjusted EBITDA and Return on Invested Capital 2020 2021(1) 2022(1) 2023 2024 ($000s) Profit/(Loss) (322,682) (26,121) (468,966) (1,988,178) (1,644,201) Adjustments Income tax expense 169,829 17,980 (75,
Slide 36: Currency Overview
CURRENCY OVERVIEW Average Period End Spot Currency FY23 1Q24 2Q24 3Q24 4Q24 FY24 FY23 1Q24 2Q24 3Q24 4Q24 FY24 Nigeria (Naira) - USD:NGN NAFEX 638 1,316 1,392 1,601 1,629 1,484 912 1,394 1,514 1,669 1,546 1,546 European Union (Euro) - USD:EUR 0.92 0.92 0.93 0.91 0.94 0.92 0.91 0.93 0.93 0.90 0.96 0.
Slide 37: Glossary of Terms
GLOSSARY OF TERMS Adjusted EBITDA (including by segment): (loss)/income for the period, before income tax expense/(benefit), finance costs and income, depreciation and amortization, net impairment/(reversal of impairment) of withholding tax receivables, impairment of goodwill, business combination t
Slide 38: Glossary of Terms
GLOSSARY OF TERMS LTM Pro Forma Adjusted EBITDA: Adjusted EBITDA for the applicable four consecutive fiscal quarters as further adjusted to give pro forma effect (as determined in good faith by management and may, with respect to acquisitions, include anticipated cost synergies and expense and cost
Slide 39: IHS Towers Investor Relations
IHS Towers Investor Relations investorrelations@ihstowers.com